1. Bangalore-Chennai Corridor Development
Toyota Kirloskar Motor Private Ltd.

2. Toyota’s Business in India
インドにおけるトヨタの事業紹介
Toyota’s Business in India
Vehicle Production
Established TKM (Toyota Kirloskar Motor Pvt. Ltd), a joint company with local partner Kirloskar Group in 1997 to engage in local vehicle production
> Location: Bangalore, Karnataka
> Production Capacity: 63,000 per year
> Capital: billion Rs (approx. 18 billion JPY)
> Investment: TMC: 89%, Kirloskar: 11%
> Sales Network: 78 sales outlets in 50 cities
To begin with, let me briefly introduce you to Toyota’s business in India.
Toyota actually started local production in 1980’s. After establishing Toyota Kirloskar Motors with our local Indian partner, the Kirloskar Group in 1998, we entered into full-scale local production.
Toyota Kirloskar Motor began manufacturing the Qualis, a SUV developed specifically for the Indian market in1999, followed by the Corolla in 2003.
Since 2005 Toyota, has been producing the Innova minivan which succeeded the Qualis.
Currently, Toyota Kirloskar Motor has production capacity of 63,000 vehicles per year, and 62 sales outlets in 20 cities throughout India.
まず最初にインドにおけるトヨタの事業活動を簡単にご紹介します。
トヨタのインドでの生産事業の歴史は、実は1980年代まで遡りますが、活動を本格化したのは、1998年のトヨタキルロスカモーターズの設立以降です。
トヨタキルロスカモータースでは、1999年からクオリスというインド専用の多目的車を、2003年からはカローラを、更に2005年からは、クオリスの後継として、イノーバというミニバンの生産を行っております。
現在、ＴＫＭの年産能力は63,000台、20都市に62の販売拠点を持っております。
Innova

3. Toyota’s Business in India
インドにおけるトヨタの事業紹介
Toyota’s Business in India
Auto Parts
Established TKAP (Toyota Kirloskar Auto Parts Pvt. Ltd.) in 2002 to supply global quality auto parts at low prices
> Location: Bangalore (near TKM)
> Production Capacity: 170k units per year (transmissions)
52k units per year (axles, propeller shafts)
> Capital: billion Rs (approx. 8.8 billion JPY)
> Investment: TMC: 64%, Toyota Industries Corporation: 26%,
Kirloskar: 10%
Export of Transmissions from TKAP to ASEAN
In 2002, to strengthen local production operations, Toyota set up Toyota Kirloskar Auto Parts.
Currently, Toyota Kirloskar Auto Parts produces transmissions, axles, propeller shafts and other components. A significant proportion of this auto parts production is exported to Toyota manufacturing plants in Thailand and other ASEAN countries, as well as South Africa and Latin America.
また、2002年には、トヨタキルロスカオートパーツという、部品生産会社を設立し、現地生産体制を強化しました。
トヨタキルロスカオートパーツでは、トランスミッションなどを生産し、タイを初めとするアセアン諸国、更には南アフリカや中南米の生産拠点への輸出も行っております。
(Source: TMC)

4. Toyota’s Business in India Meeting growing demand in the auto industry
インドにおけるトヨタの事業紹介
Toyota’s Business in India Meeting growing demand in the auto industry
Products to meet customer demands
Quality backed by Distribution Logistics
Toyota Way
Toyota Production System
“Quality”
“Customer First”
Rapid Market Growth in India
Looking to the future, to meet existing and future demand we will expand our model line-up and local production of vehicles in India.
At Toyota, we aim to build vehicles that satisfy our “Customer First” approach to business, through the pursuit of “Quality” at every step.
We bring this same Toyota “Value” to every market in the world in which we operate, including here in India, where we aim to meet the future expectations of increasingly sophisticated consumers. Our “Quality” and “Value” is a direct result of the Toyota Production System and Toyota Way, backed by Distribution Logistics that support our “Just in time” production system.
CAMRY
COROLLA
INNOVA
PRADO

5. Toyota’s Business in India Contribution to Society
インドにおけるトヨタの事業紹介（ＴＴＩ・人材育成取り組み）
Toyota’s Business in India Contribution to Society
Human Resources Development
Opened Toyota Technical Training Institute (TTTI) in August 2007
to offer middle school graduates who don’t have the chance to go to high school the opportunity to learn specialised manufacturing skills
> Location: Bangalore (on TKM grounds)
> Courses: Painting, welding, automobile assembly, mechatronics
> Number of students: Approx. 60 per year (total of approx. 180 for three academic years)
At Toyota, we firmly believe our company can only grow when it is harmony with the local community. To achieve this, Toyota actively engages in a diverse range of activities as a corporate citizen here in India.
They include the Toyota Technical Training Institute, a technical training school in Bangalore which each year gives approximately 60 Indian youths who don’t have the chance to go to high school, the opportunity to learn specialized manufacturing skills.
The three-year curriculum includes engineering theory as well as practical training at TKM. All students live in a dormitoryon-site and all tuition is free.
Toyota Technical Training Institute

6. Toyota’s Business in India Contribution to Society
インドにおけるトヨタの事業紹介（社会貢献活動）
Toyota’s Business in India Contribution to Society
Toyota Safety Education Programme
Promotion of Primary Education though providing books and bags
Building environmental awareness among school children
Construction of drinking water storage tanks for local community
Toyota is a supporter of a safety education programme launched in July 2007 by the Transport Minister of Karnataka State. In the first two months alone, the programme visited 5 schools and was given to 5400 children.
Toyota supports primary education through the provision of books and bags. Started in 2003, every year ten schools are added in to the scheme.
Every year, Toyota also helps to build environmental awareness among school children through special activities. In the 2007, activities included a drawing competition, environmental quiz, and visit to a manufacturing plant.
Toyota also contributed to the local community, with the construction of storage tanks for drinking water.

7. India’s Industrial Structure
産業構造における製造業の重要性について　　国比較
India’s Industrial Structure
Indian economy has developed in proportion to the development in service industries.
Now I would like to move on to the business environment in which we operate here in India. By way of introduction, this chart shows the industrial structure of several countries.
While the Indian economy has developed in step with service industries, growth in China has been driven by the manufacturing sector.
Growth in developed countries in the past has mainly been generated by manufacturing industries, which created the base for the growth of service industries, and steady growth in GDP.
To facilitate overall economic growth, it is important to accelerate growth of the manufacturing sector. To achieve this, the development of the logistics infrastructure is critical.
A robust logistics infrastructure not only facilitates growth in manufacturing, but also accelerates agriculture by enhancing the farming logistics and distribution.
・中国は工業を中心に発展
・先進国は工業を中心に成長し、工業の成長がサービス業の成長を促進し、全体のGDPが拡大。
・経済成長を促進するためには製造業の成長が重要であり、製造業の発展を促進するためには、物流インフラの整備が不可欠。
・工業、製造業の成長を促進するための、物流インフラの整備は、農業の物流を活性化し、農業の発展を促進。
（＊IT、ファイナンスなどの産業は、基本的に物流インフラの投資優先度が低い。）

8. Economic Power Karnataka & Tamil Nadu
州別比較　南部のﾎﾟﾃﾝｼｬﾙと重要性
Economic Power
Karnataka & Tamil Nadu
“Karnataka & Tamil Nadu” compete with the “Delhi-Mumbai” industrial zone for high growth rates
Nominal NSDP of Major States
(Rs. Trillion)
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
YR 2000
YR 2001
YR 2002
YR 2003
YR 2004
Maharashtra Rs trillion
Gujarat
Karnataka Rs trillion
Rajasthan
Delhi
Haryana
Tamil Nadu Rs trillion
Next, let’s take a look at the economic power of Karnataka and Tamil Nadu.
The charts shows the nominal Net State Domestic Product of major states in India.
In 2004, the Tamil Nadu economy generated 1.7 trillion rupees, and Karnataka 1.3 trillion rupees.
There is a gap between these two states and Maharashtra, which ranked 1st with 3.3 trillion rupees. However, compared with other states, Karnataka and Tamil Nadu have an equal or larger economy, particularly if we combine them together.
In this light, their economic impact is on a par with the Delhi-Mumbai industrial zone.
(参考）
工業純付加価値生産額では拮抗
カルナタカ　1,165億ルピー（同6位）、タミル・ナードゥ　1,510億ルピー（同3位）（2004年度）
工場数では
カルナタカ　6,956 （同7位）、タミル・ナードゥ　19, （同1位）（2002年度）
Ⅱ. カルナタカ州、タミル・ナードゥ州の経済的位置 (3)カルナタカ州の産業特性； 製造業のﾊﾌﾞ拠点、ITｿﾌﾄｳｪｱの中心地、科学・技術研究の主要拠点
主要産業：エレクトロニクス、ｺﾝﾋﾟｭｰﾀｰｴﾝｼﾞﾆｱﾘﾝｸﾞ、IT、通信、工作機械、航空宇宙、自動車、バイオ、アルミニウム、スチール、セメント
バンガロールを中心にインド有数の大企業が存在し、同国の製造業のハブ拠点として発展。1990年以降はインドのITソフトウェア産業の中心として発展 （インドのシリコンバレー）。インドのソフトウェア輸出の38％、電気機器生産の20％を占める。さらに最近ではバイオ産業も興隆。
インドの主要な科学・技術研究センターも数多く存在（Indian　Space　Research　Organization、National Aerospace Laboratories等）。
Ⅱ. カルナタカ州、タミル・ナードゥ州の経済的位置 (4)タミル・ナードゥ州の産業特性； インドの一大自動車産業集積地、ソフトウェア産業でも台頭
主要産業：自動車、自動車部品、電気機器、石油精製、化学肥料、IT、バイオ、皮革、繊維
インド有数の工業州。チェンナイ近郊に多くの製造・エンジニアリング企業が存在。特に世界の主要自動車企業の進出が相次ぎ、地場企業の存在もあい まって、一大自動車産業集積地に成長（インドのデトロイト）。一方で皮革、繊維など伝統産業も高い国内シェアを堅持。
近年はITソフトウェア産業の育成にも力を入れ、ソフトウェア輸出はカルナタカ州に次いで第2位に。
(Source: Central Statistic Organization)

9. Japanese Companies in India
日本企業の進出に見る西北部と並ぶ南部の重要性
Japanese Companies in India
Karnataka & Tamil Nadu 22 1 2 26 21 34
Delhi
Haryana
Rajasthan
Gujarat
Maharashtra
Tamil-Nadu
Karnataka
Following the “Delhi-Mumbai” area, many Japanese companies have set up in Tamil-Nadu and Karnataka.
> Tamil-Nadu: 26 (2nd=)
> Karnataka: 21 (5th)
Major Japanese companies have begun to set up in Karnataka and/or Tamil Nadu.
There are 26 Japanese companies in Tamil Nadu, second in number only to Delhi.
And 21 Japanese companies have set up in Karnataka.
デリー＝ムンバイ圏に次いで高い進出状況
タミル・ナードゥ　26社　　　　　　＝マハラシュトラ（全国2位）
カルナタカ　21社（同5位）
主な進出企業
カルナタカ
トヨタ自動車、豊田通商、トヨタ紡織、デンソー、三井物産、日本通運、三菱商事、住友電装
タミル・ナードゥ
松下電器（炊飯器、ミキサー；マンガン乾電池用炭素棒；エアコン）、味の素、島津製作所、三井住友海上、大同メタル（自動車用樹脂軸受け）、レボ・トレーディング（IT技術者教育、派遣）
(Source: as of 2006 「海外進出企業総覧2007」）

10. Importance of Karnataka & Tamil Nadu Auto Industry / Parts Revenue
自動車産業の進出に見る西北部と並ぶ南部の重要性
Importance of Karnataka & Tamil Nadu Auto Industry / Parts Revenue
Automotive parts industry aggregation equal to that in
“Delhi-Mumbai” zone
Here you can see growing importance of the automobile industry in Karnataka & Tamil Nadu, in the aggregate revenue figures for the auto parts industry in India in 2004.
As you can see, Tamil Nadu ranked 1st and Karnataka ranked 5th, highlighting the fact that the Bangalore-Chennai industrial zone is on a par with the Delhi-Mumbai industrial zone, as a key region for the automobile industry.
Tamil Nadu デリー＝ムンバイ圏と並ぶ自動車産業の集積地
(Source: ACMA）

11. Auto Manufacturing Karnataka & Tamil Nadu
自動車産業の今後の展開におけるバンガロール、チェンナイ拠点の重要性
Auto Manufacturing Karnataka & Tamil Nadu
Additional Capacity of 1 million +
According to the Japanese economic and industry press, this zone will see investment in additional projected production capacity equivalent to 1 million vehicles or more by the year 2010.
This is the result of automobile makers including TOYOTA investing in and strengthening the operations within the Bangalore-Chennai zone.
It is also clear that these investments by automakers require improvements in the infrastructure to enable them to realise their projects in this region.
2006
2010
Production capacity of automakers

12. （インドにおけるトヨタの） 事業見解
Characteristics of the auto industry Major investments - significant growth benefits
Production operations require huge investments
Operations to generate economies of scale with related companies and supplier industries
Major contributor to economic growth & employment opportunities in the region and the country
I would briefly like to explain the characteristics of the automobile industry.
Setting up a vehicle manufacturing plant requires a huge investment. At the same time, the whole industry requires and creates wider partnerships with related suppliers and manufacturing companies for materials, auto parts and components, to create economies of scale.
As a result, the automotive industry is a major contributor to the economy including related local manufacturing industries, as well as generating a large number of employment opportunities for skilled and unskilled labour, in both direct and indirect industries.

13. Importance of Distribution Logistics Karnataka & Tamil Nadu
物流インフラの重要性
Importance of Distribution Logistics Karnataka & Tamil Nadu
Strengthening transport infrastructure:
Gateway:
Seaport / Airport
Emerging
destination in the region
(ASEAN):
Optimal
Infrastructure
Inland Transport:
Roads / Railways
Logistics to support production and sales:
Production:
Parts/Material
Transport
Because we in the automotive industry are committed to this area that comprises Karnataka & Tamil Nadu, I would like to refer to the importance of infrastructure, that is Distribution Logistics.
First, the transport infrastructure, in terms of sea and air, as well as on land including roads, must be improved. An optimal transport infrastructure enables the manufacturing industry to realise optimal distribution logistics for production, sales and marketing through supply and trading chains in the region.
Creating the optimal infrastructure in this part of India will further boost trade with ASEAN, making Karnataka & Tamil Nadu an emerging industrial destination in the region, attracting more investment from overseas, further leveraging the international competitiveness of the region.
Region-wide
Operations
System
Optimal
Strategy for
Distribution
Logistics
Sales:
Products Transport

14. Chennai as India’s Gateway to ASEAN
アジア経済圏 拠点としての南部の重要性(TOYOTA)
Chennai as India’s Gateway to ASEAN
TOYOTA
Thailand
INDIA
Vietnam
Malaysia
Indonesia
Taiwan
Philippines
Oceania
Pakistan
GCC
South Africa
Central/ South America
At Toyota,we regard Chennai as an important gateway to the ASEAN region and beyond. This map shows how our Toyota operations in the region work.
As you can see, in addition to ASEAN countries, we are shipping auto parts to Central/South America and even South Africa through Chennai Port.
At the same, we are aware of the increased demand and needs of other automakers positioning Chennai as a strategic location in India, now and in the future.
インドにおけるASEANゲートウェイはチェンナイ
ASEANを足がかりとした日系企業のインド進出（域内分業）支援
日産、トヨタが進出、拡大する東側開発の必要性
Vehicle Manufacturing
Auto Parts
Parts Exports/Imports

15. Road Infrastructure Karnataka & Tamil Nadu
南部における道路環境整備の遅れ
Road Infrastructure
Karnataka & Tamil Nadu
■ Total Length: Paved/Unpaved Roads by State
Road conditions have been improving, but demand for more roads is rapidly increasing.
Now, I would like to review the infrastructure in Kartanaka & Tamil Nadu.
Looking at the road conditions, we understand they are improving. But the need for more roads and demands to keep them in good shape is growing stronger, and we look forward to Karnataka and Tamil Nadu making progress at the same pace as the north of India.
As a note, unpaved roads sometimes cause critical problems for us in the manufacturing industry, in regard to maintaining quality. I will explain this more fully later.
道路整備は相対的に進展するも、道路需要はさらに拡大の見込み
バンガロール＝チェンナイ産業圏はマハーラーシュトラ州には及ばないものの、相対的に道路整備が進む
道路総延長距離では
　　　タミル・ナードゥは16.6万km
　　（全国5位）
　　　カルナタカは15.3万km
　　（全国7位）
舗装道路総延長距離では
　　　タミル・ナードゥは12.6万km
　　（全国3位）
　　　カルナタカは10.4万km
　　（全国6位）
(Source: 陸運・幹線道路局）
(10K km)

16. Railway Infrastructure
南部における鉄道物流環境の遅れ
Railway Infrastructure
Karnataka & Tamil Nadu
Compared to the north and west, passenger kilometres and load tonne kilometres in the south are quite small.
Moving on to railway systems and transportation volumes in the south, they are considerably lower than those in the north and west of India.
While it is desirable to have a good railway system in the south, we believe roads have a more important role in the support of manufacturing industry.
北部、西部に比べて低い鉄道物流
鉄道総延長距離では北部、西部と南部に大きな差はないが、輸送人キロ、輸送トンキロでは大きな開きがある

17. Distribution Logistics Issues Scene: Chennai Port facilities
物流ロジスティック環境の実態 チェンナイ港周辺整備
Distribution Logistics Issues Scene: Chennai Port facilities
Port entrance, gate areas are in poor condition
Container terminal is congested
Finally, I would like to share the specific issues with you that affect our distribution and logistics.
We are concerned about both the conditions and congestion at Chennai Port.
Our concerns relate both to current operations, and to planning to determine our future production volumes.
(注）　上記、写真４点は三井物産資料

18. Distribution Logistics Issues Scene: Road conditions near Chennai Port
物流ロジスティック環境の実態　ハイウェイ～チェンナイ港間　道路環境
Distribution Logistics Issues Scene: Road conditions near Chennai Port
Heavily congested
Very poor road conditions leading up to highways
Extra care needed to protect the load
Most of our distribution logistics issues regarding road conditions, are centered in the vicinity of Chennai port and the roads leading to and from the end of the highway.
Again, roads are congested and poorly maintained.
We are seriously concerned that carrying loads over roads in bad conditions is causing damage in transit, and will impact on the quality of our products.
(注）　上記、写真3点は三井物産資料

19. Distribution Logistics Issues Scene: KD-IMV engine export to India
物流ロジスティック環境の実態 部品損傷事故防止のための物流コスト
説明資料 Extra distribution costs KD-IMV engine export packing
Distribution Logistics Issues Scene: KD-IMV engine export to India
No wrap:
No plastic cable:
Wrap:
Plastic cable tightens to hold the lever:
I would like to briefly show you some of the additional measures we need to take to cope with these road conditions.
For example, as a result of consistent damage, for transport to India we wrap and cover all engines with plastic sheets. We also attach plastic cables one at a time to hold levers in place, so that engines do not slide or move in transit.
These extra packing measures are applied to all exports to India, requiring extra time and distribution costs.
Tightening time = 18.4 sec/engine

20. Distribution Logistics Issues Scene: ER/SMOQR Corolla
物流ロジスティック環境の実態 部品損傷事故実例
説明資料 Extra distribution cost Case of damaged parts ER/SMOQR Corolla
Distribution Logistics Issues Scene: ER/SMOQR Corolla
We have also experienced considerable damage that requires us to apply special measures to be able to maintain our Toyota “Quality”. These slides show internal reports on damage to Corolla vehicles.
Please note that the special measures we use for transport to and in India, are not normally required in other markets.

21. Distribution Logistics Issues Scene: ER/SMOQR Corolla
物流ロジスティック環境の実態 部品損傷事故実例
説明資料 Extra distribution cost Case of damaged parts ER/SMOQR Corolla
Distribution Logistics Issues Scene: ER/SMOQR Corolla
Here are some more damage reports..

22. Distribution Logistics Issues Scene: ER/SMOQR Corolla
物流ロジスティック環境の実態 部品損傷事故実例
説明資料 Extra distribution cost Case of damaged parts ER/SMOQR Corolla
Distribution Logistics Issues Scene: ER/SMOQR Corolla
And, some more damage reports..

23. Thank you.
Thank you.
In closing, I look forward to working with you to help resolve these problems.
In this way, we at Toyota can contribute to the growth of this area, and the benefits of rapid growth that a strong infrastructure can provide the people of Karnataka and Tamil Nadu.
Thank you for your attention.